REPX(US:REPX)2024-11-06 21:46Financial Performance - Revenues totaled $102.3 million, with net income of $25.7 million, or $1.21 per diluted share[4]. - Total revenues for the three months ended September 30, 2024, were $102,339 thousand, a decrease of 5.4% compared to $108,294 thousand for the same period in 2023[23]. - Net income for the three months ended September 30, 2024, was $25,663 thousand, significantly up from $8,647 thousand in the prior year, representing a 196.5% increase[23]. - Basic net income per share for the three months ended September 30, 2024, was $1.22, compared to $0.44 for the same period in 2023, an increase of 177.3%[23]. - Generated operating cash flow of $72.1 million and Free Cash Flow of $37.8 million, contributing to a year-to-date Free Cash Flow of $99 million[2][3]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $72,130 thousand, compared to $52,652 thousand for the same period in 2023, an increase of 37.0%[24]. - The company incurred total costs and expenses of $84,861 thousand for the three months ended September 30, 2024, compared to $50,065 thousand in the same period last year, an increase of 69.6%[23]. Production and Operations - Total equivalent production averaged 23.4 MBoe/d, with oil production at 15.5 MBbls/d, representing a 6% increase in oil volumes quarter-over-quarter[5]. - The company plans to drill 7 to 9 gross operated wells in Q4 2024, with expected total equivalent production of 23.5 to 24.5 MBoe/d[15]. - Capital expenditures for Q4 2024 are projected to be between $32 million and $42 million, with $18 million to $21 million allocated for drilling and completions[15][16]. - Installed capacity for electrical generation equipment reached 20 MW, enhancing operational efficiency in Texas[11]. Assets and Liabilities - Total current assets increased to $75,326,000 as of September 30, 2024, up from $63,266,000 at December 31, 2023, representing a growth of approximately 19.5%[22]. - Oil and natural gas properties, net, rose to $871,996,000, compared to $846,901,000 at the end of 2023, indicating an increase of about 3%[22]. - Total assets reached $997,875,000, up from $945,711,000, reflecting a growth of approximately 5.5%[22]. - Current liabilities increased to $107,244,000 from $94,345,000, marking an increase of about 13.7%[22]. - Shareholders' equity grew to $507,405,000, compared to $421,595,000 at the end of 2023, representing an increase of approximately 20.3%[22]. - The company reported a significant increase in accounts receivable, net, which rose to $41,034,000 from $35,126,000, a growth of about 16.5%[22]. - The company has a current portion of long-term debt of $20,000,000, unchanged from the previous period[22]. Debt and Impairments - The company reduced total debt by $35.0 million, with total debt standing at $288.6 million as of September 30, 2024[9][10]. - The company recorded a $30.2 million impairment related to the discontinuation of its EOR Project, including a $28.9 million non-cash impairment[9]. Risk Factors - The company cautions that forward-looking statements are subject to risks and uncertainties, including oil price volatility and regulatory changes, which could materially affect future results[19]. Derivative Instruments - As of November 1, 2024, the company has oil swaps for Q4 2024 with a notional volume of 435,000 Bbl at a weighted average fixed price of $74.90 per unit[25]. - The company has natural gas swaps for Q4 2024 with a notional volume of 510,000 Mcf at a weighted average fixed price of $3.62 per unit[25]. - The company has oil collars for Q4 2024 with a notional volume of 390,000 Bbl, with a floor price of $61.92 and a ceiling price of $83.39[25]. - The company has natural gas collars for Q4 2024 with a notional volume of 405,000 MMBtu, with a floor price of $3.50 and a ceiling price of $4.45[25]. - The company entered into a fixed-to-floating interest rate swap in March 2024, resulting in a gain of approximately $1 million on a notional amount of $80 million[26]. - The company has open interest rate derivative positions with a long position of $30,000 thousand at a fixed rate of 3.180% for the period October 2024 - April 2026[27]. - The company has a short position of $80,000 thousand at a fixed rate of 4.910% for the period October 2024 - December 2024[27]. - The company has natural gas swaps for 2025 with a notional volume of 1,875,000 Mcf at a weighted average fixed price of $3.60 per unit[25]. - The company has oil collars for 2025 with a notional volume of 1,700,000 Bbl, with a floor price of $63.28 and a ceiling price of $76.59[25]. - The company has oil basis swaps for Q4 2024 with a notional volume of 330,000 Bbl at a fixed price of $0.97[25].